MB0044-Production and Operation Management

FALL-2015
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Master of Business Administration - MBA Semester 2
MB0044-Production and Operation Management-4 Credits
(Book ID: B1627)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each. Each Question carries
10 marks 6 X 10=60.
Q1. Write short notes on:
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Outsourcing strategies for capital productivity
Implementation of operations
Basic competitive priorities
Market survey method of forecasting.
Answer. Outsourcing strategies for capital productivity:
Capital Productivity is Capital deployed in plant, machinery, buildings, and the distribution systems
as well as working capital are the components of the cost of manufacturing. Outsourcing strategies
when capacity requirements are determined, it is easy to figure out whether some goods or services
can be outsourced. Outsourcing can reduce the capital and manpower requirements. Further,
outsourcing also helps
Q2. “Gujarat’s emergence as an auto hub is a positive for the economy Saturday, 17 September
2011 - 8:00am IST | Place: Mumbai | Agency: DNA
Several domestic and foreign auto manufacturers have either announced plans to establish
manufacturing plants in Gujarat or are considering it as a possible location. Those establishing the
plants include the US-based Ford Motor and PSA Peugeot Citroen from France, joining India’s Tata
Motors, General Motors of US, Bombardier of Canada and Asia Motor Works (AMW), a heavy
commercial vehicle manufacturer. Auto ancillary hubs, which are critical for a thriving auto hub, are
located in Rajkot, Ahmedabad and Vadodara, and more to come in Kutch and Sanand districts. A
precision engineering park is planned to come up in Dahej.
Domestic companies that are considering to enter Gujarat, with the exception of Maruti Suzuki,
include Hero MotorCorp (formerly Hero Honda), Bajaj Auto and Hindustan Aeronautics Ltd (HAL), a
public sector company specialising in production of aircraft and helicopters. (Recently Maruti
Gujarat’s auto hub thus goes beyond the production of cars. The mix of domestic and foreign auto
companies also provides opportunities for skills transfer and learning.
Total installed capacity of Tamil Nadu, mainly around Chennai, is 1.28 million units, and is among
the top 10 centres globally for car manufacturing, while that of Maharashtra, mainly around Pune, is
0.61 million units. With the entry of Ford and Peugeot, Gujarat’s production capacity, mainly around
Sanand, is projected at 0.76 million by 2014. This will rise significantly if Maruti’s production, largely
for export, comes on stream.
Gujarat’s currently established but relatively mid-sized auto ancillary units are getting a boost from
these automakers, referred to as OE (original equipment) procedures, asking their tier I, II and III
vendors to locate manufacturing and assembly facilities in and around their main production sites.
Tata, for example, is encouraging and facilitating key vendors to locate to Sanand and set up a
facility within a reasonable time horizon.
Gujarat’s emergence as an auto hub is not an accident, but an outcome of leveraging its strengths
through sound economic policies and competent management by the state government.
Gujarat has leveraged its locational advantages, with relatively low transaction costs for accessing
markets in the western and northern India. Good rail connectivity is slated to improve significantly
with the opening of the dedicated freight corridors to Dahej and Nhava Sheva passing through large
parts of Gujarat. Sanand is also a part of the Delhi-Mumbai Industrial Corridor (DMIC), a multi-billion
dollar India-Japan initiative. The Delhi-Mumbai freight corridor project will provide excellent rail
connectivity for the auto sector in Sanand and for other industries.
Gujarat’s port development initiatives are closely coordinated with rail transport. These provide
access for exports to the West, a favoured market for Indian OE. Since 2009, Maruti has been
shipping cars by rail from Manesar to the Mundra Port, where there is a roll-on-roll-off (RORO),
terminal for receiving and prepping new cars for exports. Korean automakers are also exploring this
option.
Gujarat’s port development also could permit economical transportation to other off, thus
diversifying transport modes.
Developing domestic and international financial services, improving road and air connectivity and
focusing on affordable housing and other amenities could further add to Gujarat’s locational
advantage.
One of the advantages of Gujarat is the larger share of non-fertile agricultural land. This potentially
makes managing the requirements of industry for land easier. Gujarat Industrial Development
Corporation (GIDC) deserves credit for turning the above potential into actual accomplishments.
As many of the established tier I, II and III manufacturers in Tamil Nadu and Delhi are faced with
space and environmental constraints in expanding their operations in their historic sites, they are
exploring alternate avenues. Gujarat’s land bank could thus be an attractive factor.
Sanand is a part of special investment region, which permits firms investing there to avail various
fiscal and non-fiscal benefits, reducing project costs, including time for completing the project cycle.
The Gujarat government recognises the importance of overall conducive investment environment in
attracting investments rather than merely relying on tax incentives. This policy lesson is applicable
to the investment and manufacturing zones (NIMZs) under the national manufacturing policy (NMP)
which is being finalised. It envisages around five greenfield integrated industrial townships.
Another noteworthy policy initiative is establishment of an automotive skills development institute
at Sanand on a public private partnership basis by Gujarat government and Peugeot Citroen. This
approach to human capital development will serve, India, Gujarat and the new entrants well as they
will have access to a younger work force, well trained in modern manufacturing techniques with
skills honed around the productivity needs of the future.
There are several reasons why Gujarat’s emergence as an auto hub is a positive for India’s economy.
First, the auto sector is a mother industry and for every direct job in the OE, minimum 5-7 indirect
jobs are created in tier I, II and III, not including jobs for drivers, service station attendants and
mechanics that form a well paying proposition for many relatively less skilled, but aspiration Indians.
Secondly, importance of transport equipment, which includes all types of motorised vehicles, in
India’s trade has been increasing. Its share in India’s exports rose from 2.3% in 2000-01 to 7.8% in
April-February 2010-11; while the corresponding share for imports soar from 1.4% to 2.5%. The
emergence of Gujarat as an auto hub is expected to assist in India’s external trade in transport
equipment as exports are likely to constitute a significant proportion of autosector’s output from
Gujarat.
Many European OE are building their design and engineering back offices in India, providing job
opportunities for the design, hardware and software engineers. This will help India to develop a
niche position globally and diversify its export basket.
Thirdly, healthy competition among auto hubs in Tamil Nadu, Maharashtra and Gujarat will be a
positive for the manufacturing productivity. This is because such competition will mitigate against
complacency by each of them and contain costs.
Finally, it would assist India in progressing towards the goal of increasing the share of manufacturing
in GDP from 16% in 2010 to 25% by 2022. It could also assist in India’s international competitiveness
in manufacturing as PTAs (preferential trade agreements) with economic partners with strong
manufacturing sectors, such as China, Japan, and Korea, are implemented.”
Question: Evaluate the factors that favour Gujarat as a location for manufacturing automobiles.
Answer. General factors that favour Gujarat as a destination for automobile manufacturing
Importance of transport equipment, which includes all types of motorised vehicles, in India’s trade
has been increasing. Its share in India’s exports rose from 2.3% in 2000-01 to 7.8% in April-February
2010-11; while the corresponding share for imports soars from 1.4% to 2.5%. The emergence of
Gujarat as an auto hub is expected to assist in India’s external trade in transport equipment as
exports are likely to constitute a
Q3. Write short notes on:
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5Ss system of waste elimination
Scheduling in services
Vendor managed inventory
Subcontracting capacity (production) option
Answer. 5 Ss system of waste elimination:
The 5S pillars, Sort (Seiri), Set in Order (Seiton), Shine (Seiso), Standardize (Seiketsu), and Sustain
(Shitsuke), provide a methodology for organizing, cleaning, developing, and sustaining a productive
work environment. In the daily work of a company, routines that maintain organization and
orderliness are essential to a smooth and efficient flow of activities. This lean method encourages
workers to improve their working conditions and helps them to learn to reduce waste, unplanned
downtime, and in-process inventory
Q4. Describe the post implementation review of a project. Explain the tools that may be
considered for post implementation review.
Answer. "Completing a project" is not the same thing as ending the project management process.
Simply finishing doesn't ensure that the organization benefits from the project's outcome.
For example, after completing a yearlong project to establish a new quality management process for
your organization, you want to make sure that what you set out to do was actually achieved. Your
objective wasn't to simply deliver a
Q5. Explain the steps to set data in logical order so that the business process may be defined. List
the ingredients of a business process.
Answer. Logical Process Modelling
It is the representation of putting together all the activities of business process in details and making
a representation of them. The initial data collected need to be arrange in a logical manner so that,
links are made between nodes for making for the workflow smooth. The steps to be followed to
make the work smoother are given below:
Q6. Describe the dimensions of quality.
Answer. Dimensions of quality
1. Cognitive challenge of the task
This dimension describes the level of thinking required for students to complete the task.
Specifically, it describes the degree to which students have the opportunity to apply higher-order
reasoning and engage with grade-appropriate academic content material.
For example, an assignment given a high score for cognitive challenge might require students to
synthesise ideas, analyse cause and effect, and/or analyse a problem and pose reasonable solutions
using content-area knowledge (eg, comparing themes from different books, etc). An assignment
given a low score on this dimension, in
FALL-2015
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subjects4u@gmail.com